German industry records broad-based Slump
January 08, 2019 @ 13:23 UTC
German industrial output unexpectedly fell in November, putting the economy at risk of slipping into a technical recession at the end of 2018. The 1.9 percent drop followed a 0.8 percent decline in October and extends a run of disappointing numbers from Europe’s largest economy. The decline in November production was broad-based and led by consumer goods and energy. Output was down 4.7 percent year-on-year, the most since 2009.
While data on industrial performance are typically volatile, a number of indicators have signaled continued weakness in the fourth quarter and amplified concerns about the economy. Bad weather took a toll on deliveries at the end of last year, global-trade tensions damped exports and business confidence waned. Still, the Bundesbank has held on to its prediction that the economy probably saw “fairly strong” growth at the end of last year.
The Economy Ministry said the slump was exacerbated by calendar effects as workers took extra time off around public holidays close to the weekend, while automakers continued to struggle to adjust to new emissions-test procedures. Consumer goods output declined 4.1 percent, while energy was down 3.1 percent. A bigger-than-expected drop in factory orders reported on Monday was worsened by a jump in aircraft commissions the previous month, though euro-area demand was weak across all categories.
German Industry Unexpectedly Records Broad-Based Slump, Bloomberg, Jan 08